According to the BVR Appraisal, the analysis will be used to determine a specific location, such as ensuring that it is legal and cannot be determined economically. The BVR Appraisal will let the client know whether a project is worth investing in—in some cases, a project may not be feasible. There are many reasons for this, including requiring too many resources, which doesn’t prevent those resources from doing other tasks, but can also cost more than would be earned by taking on an unprofitable project.
However, these studies are not used for projects that wish to measure and estimate profits. In other words, worthy can mean something different, depending on the industry and project. For example, proper studies can help determine if a hotel can generate revenue and dollar/rupiah investments to expand and build new services like restaurants, gyms & more.
A feasibility study is a report that assesses several market factors that determine a project’s viability. The report also provides guidance on the concept of “measure the right size” facilities to meet market conditions and the definition of success. The BVR Appraisal will examine the client’s market including potential facilities, competitors offering similar services, potential costs and revenue of the facility, and options for project development. In summary, the BVR Assessment will help define your or your community’s definition of success, the sustainability of your model, and help you define your community’s goals. In today’s BVR Appraisal article, we’ll take a look at five reasons why you should conduct a feasibility study. Are you ready to put your concept into action? Call us today!
- Feasibility Studies Show the Viability of Your Vision
Each development has started with an idea, and while some have defied the odds set against them, those ideas rarely went to work without first being evaluated. By looking at the landscape that surrounds your vision, including where customers would come from and who you are competing with to gain them, you’ll be able to measure the likelihood of achieving your definition of success. It is important to note that feasibility studies can also be a critical part of “right-sizing” your vision. At the BVR Appraisal, almost 80 percent of our feasibility studies yield a “yes-if” result, meaning that the initial concept can be adjusted to meet the definition of success.
- Economic Feasibility
This assessment typically involves a cost/benefit analysis of the project, helping organizations determine the viability, cost, and benefits associated with a project before financial resources are allocated. It also serves as an independent project assessment and enhances project credibility—helping decision-makers determine the positive economic benefits to the organization that the proposed project will supply.
- Legal Feasibility
This assessment investigates whether any aspect of the proposed project conflicts with legal requirements like zoning laws, data protection acts or social media laws. Let’s say an organization wants to build a new office building in a specific location. A feasibility study might reveal the organization’s ideal location isn’t zoned for that type of business. That organization has just saved enough time and effort by learning that their project was not feasible right from the beginning.
- Operational Feasibility
This assessment involves a study to analyze and determine whether—and how well—the organization’s needs can be met by completing the project. The operational feasibility studies also examine how a project plan satisfies the requirements identified in the requirements analysis phase of system development.
- Operational Feasibility
This assessment involves a study to analyze and determine whether—and how well—the organization’s needs can be met by completing the project. The operational feasibility studies also examine how a project plan satisfies the requirements identified in the requirements analysis phase of system development.
Therefore, we hope this information helped you to understand the feasibility study. If you are looking for more information regarding the feasibility study, property appraisal, and valuation, please don’t hesitate to contact BVR Appraisal via email at appraiser@bvrproperty.com. We are more than happy to assist you in analyzing your business concept until we both reach the proposed plan.